Trade impacts on developed market equities

Sources: Bloomberg and Wells Fargo Investment Institute. Quarterly data from January 1, 1982 to September 30, 2022. Global exports: quarterly data from January 1, 1982 to June 30, 2022. YOY = year-over-year. The MSCI EAFE Index captures large and mid cap representation across 21 DM countries (excluding the U.S. and Canada),around the world. Index returns do not represent investment performance or the results of actual trading. Index returns represent general market results, assume the reinvestment of dividends and other distributions, and do not reflect deduction for fees, expenses or taxes applicable to an actual investment. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results. Global exports are total world exports from the International Monetary Fund (IMF).

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Key Takeaways

  • Global trade has been marred by regional disparities and China’s lockdowns, as well as inflationary impacts and fallout from the war in Ukraine.
  • Trade volume is expected to increase by 4.7% in 2022, which should support export-oriented developed market equities.